LOS ANGELES, CA - MARCH 31: General view of an advertisement billboard for Blue Shield of California during a regular season game between the Arizona Diamondbacks and Los Angeles Dodgers on March 31, 2023, at Dodger Stadium in Los Angeles, CA. (Photo by Brandon Sloter/Icon Sportswire via Getty Images)
California – Two of California’s largest health care providers — Blue Shield of California and Kaiser Permanente — are laying off dozens of employees in a fresh wave of job cuts, according to notices filed with the state’s Employment Development Department (EDD).
Blue Shield will cut 113 positions across the state, with layoffs officially taking effect on May 1. The Oakland-based nonprofit insurer is trimming 24 jobs at its 12th Street headquarters. At the same time, other cuts span seven counties: 35 in El Dorado, 26 in Los Angeles, 13 in Sacramento, seven in San Joaquin, five in San Diego, and three in Shasta County.
The layoffs come just weeks after Blue Shield faced public backlash over a major data breach that exposed members’ private health information. The breach reportedly allowed Google to use that data to target them with advertisements. The incident has raised serious concerns about data privacy and accountability in the health care sector.
In a statement, Blue Shield said the layoffs affect less than 1% of its workforce and are part of a broader restructuring effort. “At times, this means making the difficult decision to reduce our staff,” the company said. “We are supporting those impacted… through skills training, internal job opportunities, and severance benefits.”
Meanwhile, Kaiser Foundation Hospitals announced it is cutting 40 jobs across California, 17 of which are in Northern California. Fourteen positions at its 1 Kaiser Plaza headquarters in Oakland are being eliminated, along with two other roles in Oakland and Pleasanton. Another two workers at Kaiser’s Sereno Drive facility in Vallejo are also losing their jobs, and 23 cuts are occurring in Los Angeles County.
According to EDD filings, unlike Blue Shield’s phased approach, Kaiser’s layoffs were effective immediately as of Monday.
Kaiser emphasized that none of the of the affected positions involved direct patient care and that no union-represented employees were impacted. “We do not make these decisions lightly,” the company said in a statement. We are helping [employees] transition into other roles… or providing generous severance and career support.”
Both health care giants stress that patient care will remain unaffected, but the layoffs signal deeper operational challenges — and leave dozens of Bay Area workers facing an uncertain future.
